Bloomberg – Cornell University is cutting its hedge-fund holdings by as much as 25 percent to save on fees after its endowment tumbled last year, Chief Investment Officer James Walsh said.

“We are de-emphasizing the hedge funds and more emphasizing the long-only managers,” said Walsh, who joined the Ithaca, New York, school in 2006. Cornell couldn’t justify hedge-fund fees, which typically equal 2 percent of assets and 20 percent of investment profits. Long-only managers buy stocks they expect to rise in price, while hedge funds also sell short, or bet on a decline.

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